- Stocks rose, with Europe’s STOXX 600 bouncing back from a 10-month low, and oil prices receded as Israel’s military action in Gaza progressed more carefully than some investors had feared.
- Europe’s STOXX 600 and S&P 500 futures gained about 0.7%. Brent crude oil declined to $89 a barrel, and gold declined below $2,000 an ounce. 10-Yr Treasury yields edged higher to 4.86%.
- Instead of a massive ground invasion, the Israeli military has begun slowly, and so far there are few signs that the conflict will spread across the wider Middle East region. That’s being seen as enough good news for investors to wade back into markets after last week’s sharp decline, which led to the S&P 500 going into a correction on Friday after the index closed 10% below a recent peak.
- ECB's Kazimir: We will have to stay at the peak for the next few quarters, bets on rate cuts happening already in the first half of next year are entirely misplaced.